Can You Change Your Life Insurance Beneficiary? Here’s How and When

What Is a Life Insurance Beneficiary?

A beneficiary is the person or people who will receive the payout from your life insurance policy when you pass away. You choose them when you set up the policy, and they can be individuals, charities, or even a trust. Many people list their spouse, children, or another close family member, but you can name anyone you want—there’s no legal requirement that it be a relative.

You can also have primary and contingent beneficiaries. The primary beneficiary gets the payout first, and the contingent beneficiary only receives it if the primary has passed away or can’t be found.

Can You Change a Beneficiary?

In most cases, yes—you can change your life insurance beneficiary anytime you want, as long as your policy is “revocable.” This means you have full control over who gets the money. The exception is if you made the beneficiary “irrevocable,” which means they must give written consent before you can make changes.

Term and permanent life insurance policies typically allow changes, but group life insurance from an employer may have additional rules.

How to Change Your Beneficiary

Changing your life insurance beneficiary is usually straightforward:

1. Contact Your Insurer – Request a beneficiary change form, which can often be completed online.

2. Fill Out the Form – Provide the full legal name, date of birth, and Social Security number (if applicable) of your new beneficiary.

3. Submit the Form – Return it according to your insurer’s instructions. Some companies may require a notarized signature.

4. Keep Records – Save a copy of your updated policy or confirmation letter for your files.

Your changes are not valid until the insurer processes them. Simply writing your wishes in a will or telling someone verbally won’t update the official records.

When You Should Consider Changing Your Beneficiary

Major life events often trigger a need to update your beneficiary:

• Marriage or Divorce – You may want to add or remove a spouse.

• Birth or Adoption of a Child – Adding children ensures they’re financially protected.

• Death of a Beneficiary – If your current beneficiary passes away, you’ll need to name someone else.

• Falling Out or Estrangement – Relationships change, and you may prefer your money to go to someone else.

• Charitable Giving – You might decide to leave part or all of the payout to a cause you care about.

It’s a good idea to review your beneficiary choices every few years, even if nothing major has changed, just to make sure they still align with your goals.

Legal Considerations to Keep in Mind

Some states have laws that automatically remove a former spouse as a beneficiary after divorce, but not all do. If you live in a state without that rule and forget to change your beneficiary, your ex could still receive the payout.

If your policy has an irrevocable beneficiary, you’ll need their written approval to make a change. This is more common in divorce settlements where life insurance is required for child or spousal support.

Also, if you name a minor as your beneficiary, the court may appoint a guardian to manage the funds until they reach legal age—something to plan for if you want the payout to be handled a certain way. Setting up a trust can give you more control over how the money is used.

Mistakes to Avoid

• Not Updating After Major Life Changes – This can leave money going to someone you no longer want to receive it.

• Forgetting to Add Contingent Beneficiaries – If your primary beneficiary passes away, having no backup can cause delays or disputes.

• Assuming a Will Overrides Your Policy – Life insurance contracts take precedence over your will when it comes to payouts.

• Not Keeping Contact Information Current – If the insurer can’t locate your beneficiary, the payout could be delayed or sent to your estate.

The Bottom Line

Changing your life insurance beneficiary is usually simple, but it’s a crucial step in making sure your money goes exactly where you want it to after you’re gone. Keep your policy updated as life changes, and review it regularly so your loved ones are protected in the way you intend.